Cure for an Ailing Industry? Pharma Multinationals Seek a Panacea in Indian Acquisitions

By M H Ahssan
"Sanofi-Aventis Scans India for Acquisitions"; "Glaxo Eyes Piramal, Dr. Reddy's Labs"; "MNCs Eye Indian Pharma": If these and other recent headlines are any indication, India's pharmaceutical companies are in play for multinational suitors. According to some industry observers, more acquisitions are almost certain once valuations improve -- whether for diversification, exposure to emerging markets or other purposes.
"Pharmaceutical, health care and biotechnology was one of the busiest sectors on India's Deal Street in 2008," according to Bundeep Singh Rangar, chairman of IndusView Advisors, an India-focused cross-border advisory firm. "At US$5.57 billion, it was second in terms of total value, marginally below telecommunications, which had total transactions worth US$5.78 billion." The pharma sector had 57 deals, second only to the 102 deals in the IT and IT services sector, Rangar adds.

In June 2008, the acquisition of Ranbaxy Laboratories -- India's biggest drugmaker at the time -- by Japanese firm Daiichi Sankyo set the ball rolling. At US$4.6 billion, it was the largest of India's deals for the year. Since then, the Dabur Group, which operates in the wellness space, sold a 73% stake in its Dabur Pharma prescription business to Singapore-based Fresenius Kabi for US$200 million. Perrigo, an over-the-counter firm based in the U.S., picked up an 85% stake in Mumbai-based Vedants Drugs & Fine Chemicals for US$12 million. Wockhardt, based in Mumbai, hawked its nutritional supplement brands Farex, Protinex and Dexolac to U.S.-based Abbott Laboratories for US$130 million and its animal health division to Vetoquinol of France for US$40 million. And Sanofi-Aventis of France acquired Hyderabad-based vaccine major Shantha Biotechnics for nearly US$800 million.

"The strategy in India in the past has been around a smaller number of products," says Chris Viehbacher, CEO of Sanofi-Aventis. The company's management in India "is now focusing more on the base business and has accelerated our growth rate from about 7% per year to around 15% to 16%," he notes. "Vaccine is clearly an area where we were in deficit -- pretty much everybody is. And that is why Shantha was so important." The company is still on the takeover trail. "There will be more shopping on the horizon," Viehbacher told Bloomberg News in late September. The objective, he said, is to build the company's "vaccine, biotechnology and non-prescription-medicine businesses, as well as expand in emerging markets."

The Economic Times reports that a team from Sanofi, which had US$42 billion in revenues last year, visited India recently and held talks with Mumbai-based Piramal Healthcare and the privately held, Bangalore-based Micro Labs. GlaxoSmithKline (GSK), which had US$45 billion in revenues, is widely reported to be looking to acquire a 5% stake in Dr. Reddy's Laboratories; it already has a marketing deal in place. Pfizer, meanwhile, has struck alliances with Aurobindo Pharma and Claris Lifesciences. "A lot of other proposals of the same kind are floating around, some of which involve second-tier companies" including Torrent Pharmaceuticals, Unichem Laboratories, Shasun Chemicals and Orchid Chemicals & Pharmaceuticals, according to business magazine Business India. "The promoter families of quite a few Indian drug companies are open to the idea of selling to a multinational company but are waiting for valuations to improve." Says Karan Singh, partner at Bain & Co. India: "Some of the big deals being spoken about haven't gone through because of valuations. But they will."

Four Important Trends
Why has Indian pharma come under the takeover lens? Singh notes that four important global trends are driving MNCs' strategies: "First is cost optimization, for which you need to create a flexible business model. The second is getting into businesses that are different -- vaccines, for instance. The third is the pursuit of profitable growth, for which you need to focus on emerging markets, which give you good margins. Finally [there] is the move into generics, for which many companies have to look at inorganic growth."

"With growth expected to taper off in the U.S. and other developed countries, emerging economies like India are expected to drive future expansion," says Pratik Kadakia, practice head (chemicals and energy) at Tata Strategic Management Group (TSMG). The Indian pharmaceutical market had estimated revenues of US$17 billion in fiscal 2008, he notes. "The domestic formulation business, which was US$8 billion, is estimated to grow at over 12% annually to reach US$14 billion by fiscal 2013." The key growth drivers in the domestic market, according to Kadakia, are "increasing per-capita income, growing insurance penetration, better health awareness, higher government expenditure, adherence to IPR (intellectual property rights) norms, and shifts in disease profiles." Also, the country "has established itself as a leading player in generics manufacturing as well as contract research and manufacturing. This is of interest to MNCs, which are currently facing a relatively low pipeline of new innovator drugs. Increased pressure from governments in several developed countries to reduce health care costs has also forced large pharma companies to look at enhancing their generics portfolio."

Sujay Shetty, associate director of the pharma life sciences practice at PricewaterhouseCoopers (PwC), agrees that getting access to India's domestic market and adding generics to portfolios are two primary drivers behind the increasing number of takeovers by MNCs in the pharma sector. "Until recently, India was not an important market for big pharma companies because it accounted for only a very small percentage of their global revenues. But over the next 10 years, India is expected to become a multibillion-dollar market, among the top 10 markets globally." Indeed, Rangar of IndusView notes, "Consumer spending on health care [in India] increased from 4% of gross domestic product in 1995 to 7% in 2007, and is expected to rise to 13% by 2015." However, Shetty adds that tapping the Indian market will require a tailored approach. "Cost efficiencies are important, price points are important. There are lots of poor people and different disease profiles."

On the generic front, Shetty points out that "earlier, generics used to be the lower end of the game, the bottom of the barrel. But those days have changed. Now there is a big drive for generic substitution wherever possible, because the prices collapse by 90%. All the big pharma players want to take a bigger role in generics. They realize that having generics in their portfolio gives them an extra arrow in the quiver while dealing with policymakers globally.... One way is to acquire Indian drugmakers that have proven skills in manufacturing, can keep their operations lean and have cost-effective generic development methods."

"Expansion by global pharma companies into emerging markets like India becomes imperative as about US$103 billion worth of patented drugs will go off patent in the next few years," Rangar says. "This will further hit the already sagging fortunes of such companies. Thus they are trying to augment their revenues by acquiring or aligning with companies in the generics business. The acquisition of Ranbaxy is an apt example in this context."

The industry itself isn't necessarily looking to sell out. According to an October 10 report in Businessworld, the Indian Pharmaceutical Alliance, a lobby of 12 top home-grown drugmakers, was seeking the government's help to prevent acquisitions by foreign companies, through funding to protect and promote the industry and through tackling such issues as patents and price controls.

A Fragmented, Vulnerable Market
The Indian market is vulnerable because it is fragmented. At the end of 2008, according to pharma research firm ORG IMS, the top five companies had a combined market share of only 22%. Cipla Ltd. had the largest, having ousted Ranbaxy from the top spot, yet its share was only 5.3%. The top 20 companies had a total market share of about 57%. Globally, the 10 largest companies account for about 40% of sales.

According to Espicom Business Intelligence, a market information provider based in the United Kingdom, India is the world's fourth-largest producer of pharmaceuticals by volume, accounting for around 8% of global production. In value terms, India's production accounts for around 1.5% of the world total, ranking India thirteenth. Espicom highlights the Indian pharmaceutical industry's fragmentation. "While there are around 270 large R&D-based pharmaceutical companies in India, including multinationals, government-owned and private companies, there are also around 5,600 smaller licensed generics manufacturers, although in reality only around 3,000 companies are involved in pharmaceutical production. Most small firms do not have their own production facilities, but operate using the spare capacity of other drug manufacturers."

"The intense competition in a highly fragmented market is posing a great challenge," says Rangar. "The stage is set for the next phase of growth accompanied by consolidation." Adds Shetty of PwC: "India is one of the most competitive markets in the world, primarily because it is very fragmented. No one enjoys dominance and that is unlikely to change in the near future."

Cost considerations are also driving MNCs' interest. India "offers the benefits of low-cost R&D, a domain in which it is estimated to capture a 10% to 20% share of the world's business by 2020 from less than 1% currently," Rangar notes. "Globally, pharmaceutical companies are shifting their outsourcing activities to Asian markets, with India emerging as one of the most attractive destinations," according to an August 2009 report by the Organization of Pharmaceutical Producers of India (OPPI) and Ernst & Young (E&Y) titled, Taking Wings: Coming of Age of the Indian Pharmaceutical Outsourcing Industry. "India is a fast-growing custom manufacturing outsourcing destination with a growth rate of 43% that is [three times] the global market rate," the report states. "This is driven by its ability to create a differentiating cost value proposition powered by its lower manufacturing costs, skilled manpower and strong technical capabilities."

The report rated India highest in terms of cost-efficiency attractiveness among six destinations including China, Eastern Europe, Puerto Rico, Singapore and Ireland. "India's cost efficiency is driven by its low manufacturing cost, which is only 35% to 40% of the cost of manufacturing in the United States, supported by its low installation and manpower cost," according to the report. "In drug discovery and development services, India is emerging as a hot spot, growing at around 65%. India offers significant cost arbitrage in end-to-end R&D with potential savings of 61% as compared to the United States."

Another E&Y study, developed with the Federation of Indian Chambers of Commerce and Industry (FICCI), says India enjoys significant cost arbitrage in the conduct of clinical trials, which includes infrastructure, patient recruitment, manpower, data management and processing costs. "The cost of these activities in India is typically 40% to 60% lower than in developed countries and around 10% to 20% lower than in other emerging economies," says the study, Report on Compelling Reasons for Doing Clinical Research in India. At least eight of the top 10 pharma companies internationally are tapping such allied services in India. The sector is growing by 21% annually in India, compared with 7.5% globally. According to Espicom, the U.K.-based market information provider: "With low-cost manufacturing, high-quality research and manufacturing facilities, and educated personnel, the Indian pharmaceutical industry presents both a competitive threat and partner opportunities."

A Growing Affluent Market
MNCs have another reason to eye India. The FICCI-E&Y study says that high-value drugs from MNCs could produce up to US$8 billion in sales by 2015. The population in India's highest income class is expected to grow to 25 million in 2015 from 10 million today, so more people will be able to afford high-value patented drugs. "MNCs are increasingly restructuring their operations with global parents increasing their equity stakes in their Indian affiliates," the report says. Companies such as Bristol-Myers Squibb and Merck that had exited the Indian market have staged a reentry. "Lifestyle disorders will make people more vulnerable to ailments such as cardiovascular diseases and diabetes," says Rangar of IndusView. "Secondly, medicines will become more affordable to a larger number of people as the size of India's 300 million middle class is rapidly increasing and income levels are also going up."

Affordability is at the forefront of debate. "We need to think how such deals affect our poor people and whether [the deals] can block access to drugs at a reasonable price," opposition leader L.K. Advani said in the Lok Sabha, India's lower house of Parliament, at the time of the Ranbaxy takeover.
"But the entry of MNCs does not necessarily mean more expensive medicines," says Kadakia of TSMG. "It could lead to the introduction of patented drugs for lifestyle diseases. But India will continue to need affordable medicines, particularly for acute ailments. These are typically served by generic medicines which are affordable and, in certain cases, their prices are regulated by the government. While we can expect patented medicines to be launched in India, particularly due to growing confidence in Indian IPR laws, affordable generic medicines will continue to comprise a very significant section of the market."

"There is always a fear that if MNCs come and dominate the pharma market they will raise prices," says Shetty of PwC. "In fact, that is why India has developed its own homegrown pharma industry by adopting a process-patent route as opposed to a product-patent route. In India, the cost of medicines going up matters in terms of aam admi (common man) policies. But drug pricing is still controlled by the government so, hypothetically, even were the MNCs to dominate, I don't think they would have pricing power."

Kadakia says that pharma takeovers elicit so much attention because health care is of key importance everywhere. "Health care and pharmaceuticals will continue to be of strategic interest for the country. The pharmaceutical industry will continue to be watched and followed keenly by the media as well as the government, unlike several other sectors." That is why industries such as advertising and market research have become almost 100% foreign-owned without a murmur, while pharma takeovers have a host of critics.

The criticisms notwithstanding, MNCs obviously are attracted to India. From the Indian point of view, it makes sense to join hands or sell out. Intense competition is one reason. A patent regime established in 2005 that limits the industry's ability to introduce new generic drugs is another. "With the increasing need for capital to sustain momentum, a number of Indian pharmaceutical companies will find it difficult to pursue the growth path on their own," Rangar says. "Such companies will be ideal candidates to join hands with strong multinational companies."

Indian companies face other problems, too. Exports, mainly of generics, have become an increasingly important business component. But some Western countries are setting up what are perceived as non-tariff barriers. For example, the U.S. Food & Drug Administration has taken action against several companies; early this year, it banned 28 of Ranbaxy's drugs, saying the company had falsified data and test results in approved and pending drug applications. Also, several shipments of generic drugs destined for Latin American countries have been seized in European ports. A Dr. Reddy's consignment of losartan, used to lower blood pressure, was seized in transit to Brazil by Dutch customs officials. The U.S. multinational DuPont holds the patent for losartan in the Netherlands. Several such seizures have occurred that the Indian industry considers illegal because the drugs were in transit and not meant for sale in any European market.

Indian Companies 'At a Crossroads'
"Indian companies are at a crossroads," says Singh of Bain. Because of the increasing competition, "winning in commodity generics in developed markets will be difficult. Today, valuations are fantastic. So divest. If you do not divest, you have to invest. But for that you need resources. Ranbaxy and Shantha got very rich valuations, some three to five times sales. So India promoters are asking themselves: Why shouldn't I cash out?"

The "rich" valuations Singh talks about raise a different issue: Are MNCs paying too much? Consider what happened to Daiichi after the Ranbaxy purchase. At the time of the acquisition, BusinessWeek wrote: "Japan's Daiichi Sankyo makes Ranbaxy Laboratories an offer it can't refuse." The Singh brothers, Malvinder and Shivinder, sold their 34% stake to the Japanese major for US$2 billion. Daiichi paid a similar sum in an open offer to ordinary shareholders; it now owns 63.9% of the company. At the end of the year, the Japanese company was licking its wounds. It had to write down US$3.84 billion after Ranbaxy shares plunged 66% on the Bombay bourses, in line with the rest of the market. Four years of Daiichi's profits were wiped out. That doesn't seem to have fazed others. "Japan's largest and oldest pharma giant, Takeda Pharmaceutical, is keenly eyeing Ahmedabad-based Torrent Pharmaceuticals as a possible acquisition," The Times of India reported soon after the Ranbaxy takeover in July 2008.

Takeda and Daiichi are looking to the future. When the Indian pharma industry itself looks to the future, what does it see? Just a few years ago, Indian companies seemed to be on the takeover trail. "The roles have now reversed in the Indian pharma M&A space," says the daily Business Standard. "In the growth years of 2005 to 2008, companies like Wockhardt, Dr. Reddy's and Ranbaxy were busy shopping abroad to expand their global footprint. In 2007-08 alone, Indian drug companies made 14 acquisitions abroad at a cost of US$1.3 billion." Some deals have gone wrong. Wockhardt is selling off because it borrowed too much to fund acquisitions and ended up with financial problems. Sun Pharma is still fighting a legal battle over its bid for Taro of Israel. The experiences of some others -- Dr. Reddy's with Betapharm of Germany for one -- have not turned out well: The company has had to write off around US$300 million on account of this German subsidiary.

"There has been a reduction in outbound M&A," Shetty notes. "For one, the capital availability has gone down significantly and two, some of the high-profile cases -- Dr. Reddy's with Betapharm -- have proved to be not very easy. They have not been earnings-accretive.... But there will continue be a hunt for acquisitions overseas, though the sizes of the deals will be down and the players will be a lot more cautious."

Is it the end of the Indian pharma MNC? No, says Singh. "Indian generic MNCs will come up. Sun Pharma is trying. So is Dr. Reddy's. They could become generic MNCs. Companies that have ambitions are not going to give up. This is just a pause."

Wooing the Next Generation of Indian Academics

By M H Ahssan

Can campuses be cloned? That's a question the Indian higher education community is grappling with as the government opens up additional locations of the Indian Institutes of Technology (IIT) and Indian Institutes of Management (IIMs). Supporters say the global reputation of the institutions will guarantee quality students, faculty and education. But critics argue that there aren't enough faculty members to staff these new institutes, and contend that creating inferior schools will damage the brand equity of the successful IITs and IIMs.

New research, however, suggests that the government's approach may be the right one after all. According to a paper titled, "Will They Return? The Willingness of Potential Faculty to Return to India and the Key Factors Affecting Their Decisions," Indians living in the U.S. are willing to come back to their home country. Indeed, the survey of nearly 1,000 Indians currently or previously engaged in studies at American graduate schools found that only 8% strongly preferred to remain in the U.S. While private sector jobs and entrepreneurship were the top choices for a career upon returning to India, teaching and research were not too far behind. Moreover, within the academic sector, 73% of respondents named the IITs and IIMs as the most attractive options.

"The IITs and IIMs educate only a tiny fraction of India's graduates," says David Finegold, a co-author of the study and dean of the School of Management and Labor Relations at Rutgers University in New Jersey. "With the huge expansion underway in Indian higher education and the increased demand from the growing number of young people, even a doubling of the number of IITs and IIMs will not reduce their selectivity." Finegold authored the study with Rutgers doctoral student Anne-Laure Winkler and B. Venkatesh Kumar, a professor at the School of Labour and Management Studies at the Tata Institute of Social Science in Mumbai. Kumar is spending the 2010-2011 academic year at Penn State University's College of Education as a Hubert Humphrey Fellow studying ways to rejuvenate higher education in India.

Quality Is the Key
The paper points out that India needs to recruit at least one million new faculty members for its colleges and universities if it is to meet the government's ambitious target of offering a higher education to 20% of the country's young people by 2020. "The most promising way to fill this [faculty] gap is to recruit back many of the over 100,000 Indians who are studying in the U.S. each year to obtain a graduate degree and the many others who are studying in other nations, or who have completed their degrees and begun academic careers abroad," the researchers write.

The men and women surveyed named high-quality teaching and cutting edge research as the top factors for pursuing graduate education in the U.S. Only 7% made the move out of desire for a job and plans to settle in the country permanently. Family concerns scored high among respondents' reasons for wanting to return to India, as did a desire to give back. But the results also indicate that, for Indians, America may be losing its charms as an immigrant's paradise. "It's the poor job market in the U.S., both in academics and elsewhere, over the past few years, along with tight visa restrictions, combined with the growing attractiveness of India and recognition of the opportunities there," Kumar notes.

In India, the real issue is not the number of institutes (though that, too, is a problem given the size of the young population). India has around 21,000 higher education institutions, compared to 6,700 in the U.S. and 4,000 in China. "The key is to maintain or even increase the quality of existing and new institutions," according to Finegold. "Our study suggests two ways to do this: recruit top Indian Ph.D.s -- both newly-minted and experienced -- from abroad, and increase the time and support that these faculty have for research to complement their teaching."

But there is a gap between that prescription and reality. For the returning Indians surveyed, opportunities in the corporate sector were the most attractive. Bringing up the rear was politics, with teaching and the public sector doing almost as poorly. By contrast, a job that combined teaching and research had many takers.

"The respondents in our survey preferred jobs in the private sector," Finegold states. "In all countries, the motivations of individuals for choosing different careers vary. Those primarily motivated by financial rewards are unlikely to choose an academic career. But there are many compensating advantages to being a faculty member in a research university: control over one's time, the intrinsic rewards of the chance to work on topics of most personal interest and create new knowledge, and the opportunity to interact with bright young people and colleagues. In some top Indian universities and institutes, there may also be lifestyle advantages -- free or subsidized housing on campus and no commute. The key to attracting folks back will be creating attractive higher education environments."
The older IITs and the IIMs seem to have done that already, but the newer ones have a long haul ahead. One factor in their favor is the survey indicates that the schools are competing against other institutes, rather than India's private colleges. Only 15% of respondents interested in a higher education career named private colleges as an attractive option. (There are a few exceptions like the Indian School of Business, which comes with a different pedigree.)

"It's not surprising," Kumar says of the low interest in work at private colleges. "Many of these institutions have become degree mills, with no or very little focus on quality education. Many have serious problems -- lack of quality faculty, no infrastructure and poor quality student intake. They often have very poor governance structures. These institutions are very often run by education barons, whose main aim is profiteering. Due to lack of an adequate regulatory framework, these institutions have come to be established, creating very poor quality degree-holders, many of whom are unemployable. Unless we strengthen regulatory mechanisms, this will continue to be an issue of concern."

Spreading the Word
There is of course a limit to the number of IITs and IIMs the government can set up. A proposal that the schools be privatized was greeted with widespread protest and has become a nonstarter. So even if the U.S. Ph.D.s return to India, will there be place for them in academics? "India has seen a huge emphasis on investment in education in recent years," Kumar notes. "There has been both institutional expansion and also increased funding for higher education." The environment is improving and there is now a greater focus on research, he adds. "There has also been a substantial increase in faculty salaries, though they are still low compared to the salaries that faculty receive elsewhere in the world."
But the government must also play a greater role in wooing these potential faculty members. The survey identified "removing red tape, reducing perceived corruption, and expanding research opportunities for faculty" as key factors.

"If the Indian government, colleges, and universities wish to recruit Indians who have studied abroad to return for faculty posts in India, it is vital that they understand the most effective ways to communicate with this group," the researchers write. "The good news is that most Indians based in the U.S. are fairly well informed about developments in India's education system, with close to 75% indicating that they follow changes underway in India very closely to somewhat closely. Their two primary means of obtaining information are personal networks (50%) and newspapers (45%), with less reliance on list-servers and blogs. This suggests that, in addition to newspaper ads, using a snowball approach that leverages faculty and alumni connections through social networking sites like Facebook and LinkedIn may yield the best results."

The government may need to move swiftly with its marketing efforts, as many other countries have realized the faculty problem and are swinging into action. Finegold and Kumar hope to teach officials a thing or two as well. Says Kumar: "Our intention next year is to make this a comparative survey."

India's Luxury Market: Unlocking Consumers' Taste for the Finer Things

By M H Ahssan

Five years ago, the press predicted that the Indian luxury market would be booming by now. But that potential has not yet been realized; India accounts for only 1% to 2% of the global luxury market, behind countries such as Brazil and Poland. And India is behind China on luxury goods consumption by about 15 years.

But analysts are still upbeat. They say that the Indian market for high-end goods will quadruple in the next five years. What needs to be done to realize that potential? What has been holding India back? These questions were addressed at a panel on the Indian luxury consumer at the Wharton India Economic Forum in Philadelphia. According to panelists, exorbitant duties stemming from a government mindset that luxuries are low priority, the lack of adequate range and service levels, and a culture that discourages people from flaunting their wealth are some of the factors impeding the growth of the industry.

Tikka Shatrujit Singh, chief representative in Asia for Moet-Hennessy and advisor to Louis Vuitton, said poor infrastructure, high real estate costs and foreign direct investment (FDI) regulations create an atmosphere that is unattractive to many high-end brands. “There are a lot of brands that are withholding investments,” he noted.

The Indian consumer is also staying away, opting instead to shop abroad because tariffs and duties can add up to 40% to 50% to the cost of an item. “The government should understand that the discerning Indian customer who is traveling is shopping in Dubai, London and Singapore,” according to Singh. These and other cities promote shopping festivals where wealthy Indians can stock up on designer clothing, jewelry and anything else that fits into a suitcase.

Affluent Indians are extremely cost-conscious, even when buying luxury goods, Mumbai-based jewelry designer Viren Bhagat noted. “They want to know what constitutes that value -- stones, everything. They want the entire breakdown of the jewel,” he said.

Service is also a problem. Anoop Prakash, managing director of Harley-Davidson India, noted that many luxury brands are distributed through local dealers in India. Luxury retailers prefer this to coming to the country as a subsidiary of the parent company. The result, however, is consumers don’t always receive the same high-quality brand experience they get elsewhere. Often the salespeople in these venues are not trained to serve the luxury customer. “Frankly, there’s an unfortunate tendency to consider retail jobs and jobs in automotive dealerships as low-level jobs, as opposed to respected jobs where they are delivering very valuable services and experiences,” Prakash said.

A bad experience at the store devalues the brand and alienates the Indian customer -- a big mistake, according to Prakash. “This customer is extremely global and can be difficult. The best way to show respect is by bringing the full experience that your brand promises anywhere in the world. Too many companies come in with a shortcut experience."

Bhagat agreed that service was just as important as the product. “Luxury is an experience. People are looking for the whole experience of walking through that beautiful store, being pampered by the staff, buying that product which makes you feel very special, and being reassured that this is timeless. It is not just acquiring big brands, flashy cars and clothes,” he noted.

Of course, not all wealthy Indians are clamoring for expensive goods and upscale services. According to Prakash, the long-term effects of socialism and what he calls an “anti-flaunting mentality” still hold many back, and prestige brands must help customers give themselves the permission to purchase luxury products and engage in high-end services. “There is the discomfort -- can I express myself? What will mom think when I show up with a Rs. 10-lakh (around US$20,000) motorcycle on her doorstep?” he said.

But Sanjiv Gupta, director of the public sector telecom service provider Bharat Sanchar Nigam and former president and CEO of Coca-Cola South Asia, noted that this attitude is quickly changing. “Indians, after having been deprived of everything for so long, are in this great frenzy to consume luxury brands and pamper their senses. The mindset has changed from being frugal and living within their means to much more ‘Let’s have a life.’”

For this reason, Gupta is extremely optimistic about the future of luxury brands in India and predicts that there will be a significant luxury segment in almost all categories -- everything from alcohol to kitchens to services. “I think this market will surprise us all,” he said. “Every category now has to plan for a significant luxury segment. That’s vastly different from five years ago, when every marketer was just chasing the mass market.”

The Digital Infrastructure
India’s new digital infrastructure will also have a tremendous impact on this market, according to Gupta. As fiber is laid down and networks gain 3G and 4G capabilities, 300 million users will soon have access to data-rich video and other mediums that go far beyond voice. Up until now, Internet penetration and speed has been too slow for brands to create successful online experiences. “That is changing as we speak,” said Gupta.

The digital infrastructure can also help raise the awareness of luxury brands, which are not always well-known in India. At Harley-Davidson India, Prakash noted, it wasn’t enough to polish the windows and wait for customers to stream in when they see the gleaming bikes; the brand also must have relevance to the consumer. Digital media, he said, is an opportunity to educate consumers about these brands, their history and their heritage. “There’s no better way to do that than with mobile or Internet,” he added.

While Singh also sees the cultural bias against luxury changing, he noted that the Indian taste for the finer things is not entirely new. He pointed out that wealthy Indians are the No. 1 consumers of bespoke pieces -- custom-designed pieces with the family coat of arms, family colors and initials written in local languages. “Indian consumers are the ultimate luxury consumers,” he said.

Bhagat added that the Indian customer is very well traveled, well educated and difficult to please. For foreign brands to succeed in this market, they must first understand Indian taste. If they can do that, they can tap into a very lucrative market. “The Indian market for luxury clothing is driven by the Indian wedding -- a huge market of more than US$1 billion,” according to Bhagat. Western brands can tap into the desire for India-inspired wedding clothing and jewelry, but only if they take the time to understand the Indian mindset and realize, for example, that Northern and Southern India have two completely different cultures. “For them to market a product in India, they will have to take a strategy that encompasses all of that,” he said.

Of course, this is one of many cultural distinctions Western brands will need to understand. Prakash noted, for example, that in India, purchasing a motorcycle is a family decision, rather than an individual choice. For Indian businesses, the challenge is to leverage their cultural understanding of their own countrymen, while at the same time provide the level of service the Indian customer would receive in London or Dubai.

In fact, with proper training, sales staff in India can deliver a far superior brand experience than their overseas counterparts could offer, panelists said. One big advantage: They know who their customers are. Singh notes that while Indian VIPs -- politicians, executives, Bollywood stars -- may be anonymous in New York or Tokyo, they can go into a store in New Delhi or Bangalore and be welcomed by name, offered a seat and a glass of champagne. “It’s more personalized,” he noted. “And luxury shopping is all about that very personalized experience.”

Which Brand will you Wear for your Funeral?

By M H Ahssan

For the fashion conscious, even death is a sartorial celebration. A project in Singapore now offers individuals an opportunity to showcase the clothes they wish to wear for their own funeral!

A wetsuit, a mermaid costume, clown attire, a T-shirt of the Liverpool Football club and an imperial Chinese robe are among a range of outfits chosen by some of the 23 people participating in "The Last Outfit",a photo project in the island city-state.
"Dressing is a way of life and even at death, our clothes can be a statement of who we are," says Lee Poh Wah, CEO, Lien Foundation, a philanthropic house which has partnered with Singapore daily "The Straits Times" for the initiative.

The project, an extension of the "Life Before Death" initiative of the same foundation seeks to remove the taboo of death and enthuse people to view life and death differently.

"Each exit outfit is one that best expresses the subject's unique life. Their outfits and candid attitude have given us a fresh and fun perspective on how to deal with death. If there's something like funeral fashion, they are setting a trendby wearing their souls on their sleeves," says Poh Wah.

Eight photographers of the newspaper captured the passion behind each subject's reflection on his or her own mortality.

"We are glad that our subjects were willing to put aside their superstitions and participate in this project. It wasn't easy toconvince people to talk about death, much less photograph them in their last outfit," says chief photographer Wang Hui Fen.

"We hope that through this project, the stigma of death will be reduced. Peopleneed to understand that talking about death is not going to kill you," he says.

For 46 year-old cancer patient Madam Foo Piao Lin, one of the subjects of the project the final curtain call came early. The Last Outfit project fulfilled her last wish by outfitting her in a chenogsam that she had always wanted to wear.

Rather than leave it to chance or for others to decide, Madam Foo took responsibility for her final affairs before passing away on August 1, 2011.

"There can be brilliance in the shadows of death. Her family was fortunate to be part of her good-bye plans," says Lee. Other subjects in the project shared Madam Foo's plucky attitude. They not only donned their last outfits with bravura, they saw it as a fitting way to proclaim a last hurrah to mark their final epic.

"These are the most elaborate costumes we have for our performances. When we die, we want to be remembered as performers," says part-time Chinese opera singers, Koh Goh Eng and his wife, Lam Chin Shin.

First conceived as a local campaign in Singapore in 2006, "Life Before Death" has evolved as an ongoing social experiment that harnesses unconventional online and offline initiatives to break the taboo of death and to foster 'die-logues' or conversations on end-of-life matters, according to a statement released on Asianet.

The initiative works with diverse partners to reach a wider global audience through social media, films, photography, cartoons and art, enthusing the public to view life and death differently.
A recent project, "Happy Coffins", allowed people to personalise coffins for themselves or a loved one, and by so doing, overcome the stigma of death.

An international feature documentary film that examines the global crisis of untreated pain will is set to be released by the end of 2011.

The film shot in 11 countries profiles palliative care professionals at the frontline as they seek to improve care for the dying. It uncovers the diverse cultural perspectives on pain, death and dying.

Causes of Depression in Women

Clinical depression is a state of extreme sadness or hopelessness that reaches a point where it affects your every day activities and quality of life. Depression can affect anyone, irrespective of age, gender or race. It has been found to affect women twice as much as it affects men. Depression can have serious physiological as well as psychological consequences. Types of depression Situational depression: Certain situations or an unpleasant experience can be so stressful that you may lapse into depression. Examples can be the death of someone you love, a divorce or the loss of a job. Chronic depression: Chronic depression has got to do more with the proper functioning of your brain. An imbalance in the various neurotransmitters (chemicals like serotonin that trigger good mood) can lead to this more serious form of depression. Sometimes, prolonged periods of situational depression can alter your brain functions resulting in chronic depression. Bipolar disorder: This is a kind of depressive disorder which involves emotions at two extremes or poles. In bipolar disorders, an individual may swing from high levels of excitement to high levels of depression. This condition is also known as manic disorder. Seasonal affective disorder: Also known as SAD, this is a form of depression related to changes in seasons and a lack of exposure to sunlight. Some of the symptoms of SAD are headaches, irritability and fatigue.
Symptoms of depression Here are some of the common symptoms that you may experience in case you are suffering from depression. If you have at least 5 of the following symptoms for more than 2 weeks, talk to your doctor:
Lack interest or pleasure in things you used to enjoy earlier. Feelings of intense sadness, hopelessness or emptiness. Feeling like you want to cry or crying for no reason. Feeling slowed down or restless. Have a change in appetite; eat too much or too little. Unexplained weight gain or loss. Have thoughts of death or suicide or attempt suicide. Feelings of worthlessness and excessive guilt. Have problems concentrating or making decisions. Trouble falling asleep or to keep asleep or feeling like you want to sleep all the time. Gets fatigued. Gastrointestinal (digestive) and sexual problems. Feelings of hopelessness and negative thoughts. Headaches or aches in other parts of your body. Unexplained anxiety or fear.
What causes depression? There is no single knowncause for depression. The disorder often runs in families. It isbelieved that genetics, stress or physical illness, medication or even Postpartum Depression may trigger an imbalance in brain chemicalscalled neurotran smitters, resulting in depression
Some factors that can develop depression are: Genetics: It is widely believed that heredity or genetics is a cause for depression although not everyone with a family history of depression develops the disorder. Stress: Stressful life events, such as loss of a job, divorce or death of a spouse can lead to depression. Poor health: Individuals with chronic illnesses, such as heart disease, stroke, Diabetes or cancer can develop depression. Medication: Prolonged usage of certain medications, such as anti-hypertensive drugs, sleeping pills, etc. may cause symptoms of depression. Postpartum depression: It is common for mothers to feel a mild form of gloom that usually occurs a few days to weeks after giving birth characterized by feelings of sadness, anger, anxiety and irritability. In a milder form this condition is known as baby blues. But when this condition gets worse and becomes severe, it is called Postpartum Depression. Hormonal imbalances: Hormonal factors may play a role in the development of depression. Thyroid disorders such as Hypothyroidism (under active thyroid) are also linked to depression. Substance abuse: Consumption of alcohol, smoking cigarettes or using drugs may actually contribute to depression and anxiety disorders. Character traits: Certain personality traits, such as having low self-esteem, excessive guilt, feelings of worthlessness, inability to handle the pressures of everyday living or having a negative outlook of life can make a person depressed.
TreatmentGetting help soon If you feel that are being sad for longer periods of time, consult your doctor. Your doctor can help diagnose depression and treat you. With timely treatment your depression will soon disappear and you will be your normal, happy self again.
Living with depression Do not stress yourself too much with everyday tasks. Do not take more than you can handle. Do not blame yourself for failures or have negative thoughts about life. Remember such thoughts arise because of the depressed state of your mind. Develop new areas of interest or a new hobby. Explore areas that can keep your mind occupied and interested. Do not take major decisions in your current condition. Leave that to close family members or trustworthy people. Alcohol or other kinds of intoxicants worsens depression and will delay your recovery. Avoid them. Exercise regularly. Even moderate exercises have a positive impact on overall health and can cheer you up. Follow you doctor’s advice and do not miss out on appointments or any of the treatment plans. Have medications on time, drink plenty of water and eat a balanced nutritious diet and get enough sleep. It will take a few months for you to recover. Do not lose heart. Remember that depression is treatable and curable. There are so many people out there just like you who have maintained a positive outlook and defeated depression—so will you.

Moods & Irritability in Women

Simply put, a mood disorder is a frequent or repeated disturbance of your normal mood. Difficult situations in life bring stress, frustration and disappointment. These are but normal reactions to the hardship that you may face in life. However, if these feelings last more than a few weeks or months wherein it spoils your quality of life, it could be a sign of a mood disorder. You may feel sad all the time. Or you may find it difficult to fall asleep or stay asleep. You may experience various symptoms of illness that may not really have an identifiable physical source.
Types of mood disorders There are two types of mood disorders:
Unipolar disorder: Also known as clinical depression, this type of mood disorder is very common and can affect your quality of life. It can affect people of all ages. Women are more prone to depression than men. On occasions depression can be life threatening and thoughts of suicide or attempted suicide is a major complication of this disorder. It is a serious condition and requires professional treatment. Bipolar disorder: Also known as manic-depression or manic-depressive illness, this type of mood disorder causes major emotional changes and mood swings, from manic highs to depressive lows. The majority of bipolar individuals experience alternating episodes of mania and depression—manic behavior is one extreme of this disorder, and depression is the other.
Causes of mood disorders Although there is no concrete evidence to nail the cause of mood disorders, genetics, imbalance in brains chemicals (neurotransmitters), hormonal imbalances and the environment in which an individual lives can be causative factors of the problem. Symptoms Although each individual may experience symptoms differently, some of the most common symptoms of mood disorders include: Loss of appetite or overeating. Sleeplessness or sleeping excessively. Loss of energy, feeling tired all the time. Loss of interest in things that you once enjoyed. Headache, irritability and hostility. Aggressive behavior.
Complications Mood disorders can lead to serious complications—emotional, financial, physical and sometimes legal. It can affect every area of your life and that of your loved ones. Here are some of the most common complications of mood disorders:
Suicide or attempted suicide. Financial crisis. Poor relationship with people. Poor work performance. Loss of job. Substance abuse—excessive consumption of alcohol and/or drug abuse. Legal problems. Marital problems—separation from spouse or divorce. Social isolation. Are you at risk? You may be at an increased risk of developing a mood disorder if: One or more of your close family members have the problem. Lead a highly stressful life. You drink alcohol in excess or abuse illegal drugs. You suffer from factors like loss of a job, death of a loved one, heavy financial loss, etc.
Seeking help Mood disorders require medical treatment. Many people suffering from the problem live with the false belief that mood disorders will go away on its own. But this is far from true. Mood disorders can have a serious negative impact in your life and that of your loved ones. If you have any symptoms of a mood disorder, seek medical help as soon as possible.

Anger Management in Women

Anger is a natural emotion, just like so many of the other emotions that you go through in your day-to-day life. It is in fact a natural response to certain perceived threats that you may come across while dealing with situations. It can happen anywhere, at anytime. You may get into a yelling contest with a stranger at a traffic jam or you may get into a wordy dual with a petrol pump attendant. It could be a nasty screaming match with your spouse or a cold, seething rage with your “insolent” colleague.
The problem with anger Anger in itself is not a problem. Experts in the field of anger management agree on this. The real problem is how you handle your anger. Screaming or hurling missiles at your spouse, smashing crockery or slamming down the phone on your colleague is not anger management at its best.
It only means your anger is getting the better of you. Instead of expressing your anger in a healthy and assertive way, you may be expressing it in an unfriendly, aggressive manner—a manner that could quite possibly lead to violent behavior and a cascade of personal and professional consequences.
Handling anger Before anger begins handling you and you begin to manhandle someone, it is better to learn to manage anger in a healthy way. Here are a few tips that can be useful: Analyze why you are angry: Reading this you may think, “If I could stand there, analyzing my anger, why would I be angry at all?” And that is exactly the point. When you try to analyze the reason for your anger, this analysis occupies mind space and you will soon see your anger evaporate—because you cannot think two things at the same time. See? Analyze what makes you angry: Fortunately, in this case, you have more time. For example, imagine you have a neighbor, whose dog barks you out of your siesta. You wake up fuming wanting to wring the neck of that stupid dog and maybe that of your neighbor’s as well. But wait! A dog is a dog and dogs bark. You cannot keep it quiet for long, despite the best of training or threats. Under the circumstances, it is better that you behave like a human and let the beast be. So, the next time the dog barks, you will be prepared for it and calm will prevail. You will also be surprised when you find yourself getting used to the constant barking so much so, it may require a foghorn to wake you up the next time. Analyze where you get angry: Anger does not happen on its own. It is more of a learned behavior. We were not born angry. There are certain triggers that can set you off and you may find yourself erupting into a human volcano. Differences at home or work could be simmering inside you. It becomes quite a problem when your fuse is lit at home and you explode when you reach office. Or you could have had a bad day with your “tyrannical” boss and wanting to box his nose in, you end up landing a punch on your spouse’s face upon reaching home. Both situations can be catastrophic. If you are angry at home, leave your anger there before you leave to office and vice versa. Express anger constructively: Sounds a little paradoxical—but it is in fact logical. Anger management does not mean you do not get angry and allow people to walk all over you. It is okay to get angry—being angry is not a bad or negative thing. While it is appropriate to keep your cool on occasions, trying to be a saint will not get you anywhere. Expressing yourself in an assertive, non-aggressive manner is the healthiest approach to handling anger. Managing anger effectively can benefit you and those around you. Your health may improve, you will feel better about yourself, and strained relationships can be repaired when you control your anger.
Anger and health Anger can have a negative impact on your overall health—physical, emotional and psychological. Getting angry often or aggressive expression of anger can be harmful. Pent up anger can affect you too. Some of the most common health problems associated with destructive anger are:
headaches, sleeplessness, high blood pressure, eating difficulties, digestive problems, stress and stress-related problems, deep sadness, if your reason for getting angry is not adequately addressed and uncontrolled anger can sometimes lead to a heart attack in people with heart problem
Finally Uncontrolled anger has its side effects—and it may not be too pleasant. You may have your share of woes just as many people do—unpaid bills, traffic jams, work pressure, conflicts with colleagues, strained spouse relationship, anxiety about the future—modern society is full of stress. But that does not mean you pick up a baseball bat and run berserk bumping people on their head. It also does not mean that you behave like a sage even when people trample on you. Be positive—positive people do not get put down. Neither do they put others down. Be assertive without getting aggressive. Be polite, but firm. And hook your anger onto the hanger.

Lokpal draft would increase corruption: Anna Hazare

Stating that the Government Lokpal draft bill was fraudulent, Anna Hazare today said his agitation would continue till a legislation was in place as per the Janlokpal bill draft prepared by the civil society.

"The government Lokpal draft was fraudulent. Corruption would increase if a legislation is passed on the basis of Government's draft," Hazare told reporters here after the two-day meeting of his Core Committee members.

We will also see which member of the Standing Committee opposes the Janlokpal bill, Hazare said adding houses of such members would be gheraoed.
"People should stage a sit-in in front of their houses and chant 'Raghupati Raghav Rajaram'," he said adding he would campaign against MPs opposing the Janlokpal Bill in the 2014 Lok Sabha elections.
"I will tour constituencies where these MPs will seek re-election and urge people not to vote for them," Hazare said.

Stating that the second battle for independence has begun, Hazare said ,"eventually, victory will be ours."

"It is not Hazare, but God who was behind the success of the anti-corruption agitation," he observed and urged his supporters not to let the torch of this anti-corruption agitation douse till the country is rid of corruption.

Hazare also announced that he will undertake a countrywide tour next month after his health improves.

Talking about his fast at the Ramlila Maidan, he said, "There were five to six people in the UPA government to consider themselves as Prime Minister. During my 12-day fast, there was nobody to take decision. Sonia Gandhi had gone abroad. The Government's condition had become weird,".